India’s import bill for September surged as global crude prices stayed firm and festive-season demand lifted gold buying. Oil imports stood at $14 billion, while gold inflows hit $9.6 billion, reflecting both elevated prices and strong domestic consumption trends ahead of Diwali. Data sourced from the Ministry of Commerce.
India’s Import Mix Shows Dual Effect of Demand and Prices
India’s import dynamics in September 2025 revealed a sharp uptick in both energy and precious metal inflows. According to the Ministry of Commerce data, the country’s oil imports totaled nearly $14 billion, propelled by moderate demand growth and persistently high global prices. Meanwhile, gold imports climbed to $9.6 billion, highlighting festive-time consumption optimism and a softer rupee that made imports costlier.
The data underline the competing forces shaping India’s trade balance—resilient consumption on one hand and costlier commodity prices on the other. Analysts note that the twin rise in oil and gold purchases could widen the trade deficit, despite robust export activity in electronics, engineering goods, and pharmaceuticals.
Economists attribute the uptick to a confluence of seasonal factors and international market moves. Brent crude averaged around $84 per barrel in September, supported by production cuts from major OPEC+ producers. On the other hand, gold imports surged ahead of Dussehra and Diwali, as jewellers and retailers built inventories amid improving consumer sentiment and steady rural incomes.
India, the world’s third-largest oil consumer and second-largest gold importer, continues to navigate price volatility and its implications for inflation and the rupee. While the Reserve Bank of India has maintained a vigilant eye on imported inflation, analysts suggest that sustained energy and bullion imports could weigh on India’s current account in the coming quarter.
Notable Updates
Oil imports: Totaled $14 billion in September, reflecting stable demand despite high crude prices.
Gold imports: Jumped to $9.6 billion, the strongest level in six months amid festive demand.
Global factors: OPEC+ supply cuts and geopolitical tensions kept oil prices elevated.
Domestic trends: Retail gold demand up 15% year-on-year as jewellers stocked ahead of the festive season.
Trade impact: Higher import costs may expand September’s trade deficit beyond $25 billion, economists estimate.
Currency effect: The rupee weakened to around ₹84.3 per dollar, making imports relatively costlier.
Sources: Ministry of Commerce and Industry; Reuters; Bloomberg News.
